Planning resource and capital allocations among oil and gas-producing wells and oil and gas-producing areas is important to the financial health of oil and gas exploration and production corporations. Corporations may make measurements in an attempt to forecast drilling results of new well locations to aid in this planning.
Available methods for determining new well locations rely on the production history of existing wells to forecast drilling results of new wells. However, evidence indicates that new wells drilled near existing shale wells often do not replicate the existing wells' production performance. Accordingly, corporations utilizing available methods may drill many disappointing wells, resulting in losses and misallocation of resources.